Lawsuit Filed by Cable Car Operator to Be Ruled on December 19
All Subsequent Construction Halted After Contractor Selection
Work to Resume Immediately if City Wins, Ordinance Revision Planned if Not
Presidential Office Also Calls Out Problems with Cable Car Monopoly
The fate of the Namsan Gondola project in Seoul will be decided in court on December 19. Construction has been halted for over a year due to a lawsuit filed by the cable car operator. The city believes it has a strong chance of winning the case, but even in the event of a loss, it plans to continue the project by amending the enforcement ordinance.
According to the maintenance industry on December 17, work on the Namsan Gondola was suspended after demolition began on the Lee Hoe-young Memorial Hall, where the lower boarding station is to be built. Construction progress stands at around 15 percent, and the transportation of structural parts for the track system, excluding cabins to be imported from overseas, has also been halted.
The original target for starting operations of the Namsan Gondola was February of next year. Seoul Mayor Oh Se-hoon initiated the project to end the monopoly of the Namsan Cable Car, which has lasted for over 60 years, and to revitalize the surrounding area. The plan is to operate 25 ten-passenger cabins, capable of transporting up to 2,000 people per hour, making Namsan accessible to wheelchair and stroller users as well.
Accordingly, in July last year, the city selected a construction company and found a manufacturer for the cabins. The city also amended relevant ordinances to ensure that profits generated from gondola operations would be used for public purposes. A dedicated Namsan Gondola Task Force was formed to review the scale of organization and staffing required for unified information systems for ticket sales, validation, and reservations, as well as for overall project operations.
However, at the end of August last year, the project was indefinitely suspended due to a lawsuit filed by Korea Cable Car Industry, the cable car operator. The company argued that Seoul’s decision to change the land use designation in the area to install gondola facilities was flawed, and filed a lawsuit with the Seoul Administrative Court to revoke the city’s urban management plan. Following an application for a stay of execution, the court suspended the effectiveness of the city’s plan.
The key issue in the December 19 ruling is whether it was lawful for Seoul to change the designation of the existing Urban Natural Park Area to “Urban Planning Facility (Park)” in order to install the gondola. The city changed the zoning of the project site to allow for the installation of intermediate towers (reinforced concrete pillars) over 30 meters high on Namsan. Korea Cable Car Industry claims that the city’s actions violated the standards for lifting Urban Natural Park Area designation under the Park and Green Space Act.
Seoul plans to immediately resume construction if it wins the case. A city official stated, “The likelihood of losing is low. After the court ruling, we plan to proceed with the demolition of the lower boarding station and begin work on the main facilities.”
Even if the city loses, it intends to continue the project by utilizing a revision to the enforcement ordinance of the Park and Green Space Act, which would relax height restrictions within Urban Natural Park Areas. The National Assembly has already initiated the amendment process, and the legislative notice period has ended. The bill is currently pending review by the Ministry of Government Legislation and will be officially announced at a Cabinet meeting.
Unlike the Han River bus or Jongmyo development projects, it is unlikely that this issue will escalate into a major political controversy. President Lee Jaemyung has personally raised concerns about the Namsan Cable Car monopoly, and the Presidential Office has begun to look into the matter. Earlier this month, Kang Hoon-sik, Chief Presidential Secretary, directly criticized the situation, stating, “Citizen dissatisfaction with the quality of the Namsan Cable Car service stems from the structure in which a preferential business license granted in 1961 has been maintained for over 60 years.”
In fact, Korea Cable Car Industry received Korea’s first cable car business license from the government in 1961 and has operated the Namsan Cable Car since the following year. The annual fee paid by Korea Cable Car Industry to the government for the use of state-owned land is only about 100 million won. In contrast, the company reportedly earned operating profits of up to 9 billion won last year.
With the National Assembly and Presidential Office now addressing the “monopoly structure” of the Namsan Cable Car business, Seoul expects further institutional support. Recently, the Democratic Party of Korea introduced a bill to amend the Railway Transport Act, which would limit the validity period of cableway business licenses to 20 years or less, and require a new review for reauthorization after that period. If the amendment passes the National Assembly, Korea Cable Car Industry will have to undergo a reauthorization review.
The new target date set by Seoul for the gondola’s opening is March 2027. Earlier this month, the city announced plans to further revitalize Namsan, including the installation of a 360-degree observatory, nighttime lighting, and a circular promenade with a media wall. Kim Changgyu, Director General for Balanced Development at Seoul Metropolitan Government, stated, “The gondola is not only a means of expanding transportation to Namsan, but also a solution to preserve the ecosystem and fully return Namsan to the citizens.” He called for continued cooperation from the government and the National Assembly.
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